News added on 07.03.2018

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Duties

New VAT scheme open for registration

If you store goods for non-EU overseas businesses, you may be required to register for HMRC’s new VAT and duties scheme.

If your business stores goods for sale in the UK, which have been imported from outside the EU and are owned by, or for, a business belonging outside the EU, you’ll soon need to apply to HMRC for approval under its “fulfilment house due diligence scheme”. You don’t need to apply for HMRC approval if you own the imported goods or your business is the transportation of goods and you’re holding them temporarily before delivering them.

If you apply late, HMRC can charge you an initial penalty of £500, plus £500 per month until you submit your application, to a maximum of £3,000. Once approved by HMRC, you must register as a fulfilment house by 1 April 2019. If you don’t HMRC will take steps to prevent you from carrying on your business of storing goods imported for sale in the UK and you could be fined up to another £10,000. You’ll be able to apply through your HMRC VAT online account from 1 April 2018. If you’re trading as a fulfilment business before 1 April 2018, you must apply no later than 30 June 2018. If you start trading on or after 1 April 2018, the deadline is 30 September 2018.

Once you’re registered, from 1 April 2019 you must keep an easily accessible record of: (1) your overseas customers’ contact details; (2) their VAT registration numbers; (3) the type and quantities of goods stored in your warehouse; (4) import entry numbers; (5) the delivery addresses; and (6) evidence that you’ve explained to your overseas customers their tax and duty obligations in the UK

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